Mahindra Manulife Dynamic Bond Yojana endeavours to take advantage of interest rate movements. With the flexibility to counter a dynamic environment, the Scheme aims to generate regular returns and capital appreciation through active management of portfolio in line with the evolving interest rate scenario.

• The YTM of the portfolio is around 7.23%.
• The Modified Duration of the portfolio (MD) increased to around 3.38 years
• The Portfolio largely derives it duration from Gilts as we believe that the AAA credit spreads may expand as we move ahead

Under normal circumstances the asset allocation pattern will be:

Instruments	Indicative Allocation (% of assets)		Risk Profile
	Minimum	Maximum	Low/Moderate/ High
Debt* & Money Market instruments	0%	100%	Moderate
Units issued by REITs & InvITs	0%	10%	Moderately High

* Includes securitized debt and debt instruments having structured obligations/credit enhancements (such as corporate / promoter guarantee, conditional and contingent liabilities, covenants, pledge and / or Non Disposal Undertaking of shares etc) upto 35% of the net assets of the Scheme.

Benchmark: CRISIL Dynamic Bond Fund BIII Index
Entry Load: N.A.
Exit Load: Nil

KEY MARKET INDICATORS

Parameters	31-Oct-2022	30-Sep-22	31-Oct-21
RBI Repo Rate %	5.90	5.90	4.00
5Y AAA PSU %	7.40	7.34	5.99
1 year CD %	7.50	7.05	4.31
10Y Gsec %	7.45	7.40	6.39
CPI (%)	7.41	7.00	4.48
IIP (YoY) %	-0.83	2.36	4.17
US 10Y %	4.05	3.83	1.55
Dollar Rupee	82.79	81.35	74.88

Source: Bloomberg; as on date October 31st, 2022

FUND MANAGER : MR. RAHUL PAL
Total Experience : 21 years
Experience in managing this fund: 4 years 3 months (managing since August 20, 2018)

The domestic debt market continued to witness a schism in the yield curve. The money market yields moved up by close to 40-50 basis points (bps) while the benchmark 10 years Gilt rates remained largely stable and moved up by around 5 bps. A tight systemic liquidity coupled with supply from the banking segment in issuing Certificate of Deposits (CDs) to fund the strong credit growth led to a sharp rise in the short-term rates. The credit yields curve for AAA rated issuers has largely become flat now with the 1, 3 and 10 years, rates largely the same now.

As minutes of the MPC meeting held on September 30th were put out for in the public domain, we saw two external members opining for a wait and watch policy to see the lag effects on the economy of the monetary policy measures.

The US rates continued its upward trend and the yield curve from the 3 months treasury to the 10 years treasury flattened marking potential recessionary economic growth in the near future. The home prices in the US have started stagnating /marginally falling and this trend would be actively monitored. The US Fed meets in the first week of November and would be an interesting watch.

Data as on 31 October, 2022 | Data source: Bloomberg

Note: The data/statistics given above are to explain general market trends in the securities market, it should not be construed as any research report/research recommendation.

CURRENT MONTH October 31, 2022
AUM (Rs. In Crore)	68.69
Monthly AAUM (Rs. In Crore)	72.59
Avg. Maturity (Years)	4.32
Modified Duration	3.38
Macaulay Duration (Years)	3.51
YTM (%)	7.23

PREVIOUS MONTH September 30, 2022
AUM (Rs. In Crore)	75.56
Monthly AAUM (Rs. In Crore)	72.64
Avg. Maturity (Years)	4.05
Modified Duration	3.19
Macaulay Duration (Years)	3.31
YTM (%)	7.07

YTM : Yield to maturity should not be construed as minimum return offered by the Scheme.

*Cash & Cash Equivalents includes Fixed Deposits, Cash & Current Assets and TREPS

*Cash & Cash Equivalents includes Fixed Deposits, Cash & Current Assets and TREPS

CURRENT MONTH October 31, 2022
Security	% to N.A.
5.74% GOI (MD 15/11/2026) (SOV)	20.64%
7.38% GOI (MD 20/06/2027) (SOV)	18.18%
7.26% GOI (MD 22/08/2032) (SOV)	17.95%
7.39% Maharashtra SDL (MD 09/11/2026) (SOV)	7.25%
Housing Development Finance Corporation Limited (CRISIL AAA rated CB)	7.02%
5.22% GOI (MD 15/06/2025) (SOV)	6.94%
364 Days Tbill (MD 24/08/2023) (SOV)	6.89%
364 Days Tbill (MD 31/08/2023) (SOV)	6.88%
91 Days Tbill (MD 12/01/2023) (SOV)	0.36%
91 Days Tbill (MD 20/10/2022) (SOV)	0.33%
TOTAL	92%

PREVIOUS MONTH September 30, 2022
Security	% to N.A.
5.74% GOI (MD 15/11/2026) (SOV)	18.79%
7.38% GOI (MD 20/06/2027) (SOV)	16.59%
7.26% GOI (MD 22/08/2032) (SOV)	16.40%
364 Days Tbill (MD 24/08/2023) (SOV)	12.49%
7.39% Maharashtra SDL (MD 09/11/2026) (SOV)	6.61%
Housing Development Finance Corporation Limited (CRISIL AAA rated CB)	6.39%
5.22% GOI (MD 15/06/2025) (SOV)	6.31%
364 Days Tbill (MD 31/08/2023) (SOV)	6.24%
364 Days Tbill (MD 13/10/2022) (SOV)	5.29%
91 Days Tbill (MD 20/10/2022) (SOV)	0.33%
TOTAL	95%

FRESH ADDITIONS	COMPLETE EXITS
Security	Security
91 Days Tbill (MD 12/01/2023) (SOV)	364 Days Tbill (MD 13/10/2022) (SOV)
	91 Days Tbill (MD 20/10/2022) (SOV)

CP - Commercial Paper, CD - Certificate of Deposit, CB - Corporate Bond, SOV- Sovereign

Note: The companies/stock(s) referred above are only for the purpose of disclosure of significant portfolio changes during the month and should not be construed as recommendation to buy/ sell/ hold. The fund manager may or may not choose to hold these companies/stocks, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

SYSTEMATIC INVESTMENT PLAN

WITH THIS YOU CAN • Build corpus in the long term • Take advantage of rupee cost averaging • Experience the power of compounding even on small investments

CHOICE OF FREQUENCIES • Weekly • Monthly • Quarterly

CHOICE OF DATES Any date of your choice

MINIMUM AMOUNTS / INSTALMENTS • 6 instalments of ₹ 500 each under weekly frequency • 6 instalments of ₹ 500 each under monthly frequency • 4 instalments of ₹ 1500 each under quarterly frequency

SYSTEMATIC TRANSFER PLAN

WITH THIS YOU CAN • Take measured exposure into a new asset class • Rebalance your portfolio

CHOICE OF FREQUENCIES • Daily • Weekly • Monthly • Quarterly

CHOICE OF DATES Any date^ of your choice

MINIMUM AMOUNTS / INSTALMENTS • 6 instalments of ₹500 each under daily, weekly and monthly frequency • 4 instalments of ₹1500 each under quarterly frequency

SYSTEMATIC WITHDRAWAL PLAN

WITH THIS YOU CAN • Meet regular expenses

CHOICE OF FREQUENCIES • Monthly • Quarterly • Half-Yearly & Annual

CHOICE OF DATES Any date of your choice

MINIMUM AMOUNTS / INSTALMENTS • 2 instalments of ₹ 500 each under monthly / quarterly / Half-Yearly & Annual frequency

^STP can be registered for any date under the monthly and quarterly frequencies and for any business day under the weekly frequency.

Mahindra Manulife Dynamic Bond Yojana

^Benchmark ^^Additional Benchmark. CAGR – Compounded Annual Growth Rate. Inception/Allotment date: 20-Aug-18.
Past performance may or may not be sustained in future and should not be used as a basis of comparison with other investments. Since inception returns of the scheme is calculated on face value of Rs. 10 invested at inception. The performance details provided above are of Growth Option under Regular Plan. Different Plans i.e Regular Plan and Direct Plan under the scheme has different expense structure. *Based on standard investment of Rs. 10,000 made at the beginning of the relevant period. Performance details of other schemes managed by the Fund Manager(s) is available at the end of the document

^Benchmark CAGR - Compounded Annual Growth Rate. Past performance may or may not be sustained in future and should not be used as a basis of comparison with other investments. The performance details provided above are of Growth Option under Regular Plan. Different Plans i.e Regular Plan and Direct Plan under the scheme has different expense structure. Mr. Rahul Pal manages 10 schemes of Mahindra Manulife Mutual Fund.

Pursuant to SEBI circular no. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/573 dated June 07, 2021 Potential Risk Class ('PRC')
Matrix for debt schemes based on Interest Rate Risk and Credit Risk is as follows: